Open Markets, Open Minds: Exploring the Benefits of the India-Australia Trade Pact

Must Read

The India-Australia Economic Cooperation and Trade Agreement (ECTA) officially took effect on Thursday, December 29.

New Delhi is buzzing with excitement over the highly anticipated ECTA agreement.

With the Comprehensive Economic Cooperation Agreement in place, not only will Indian products have tariff-free access to the Australian market, but an estimated one million job opportunities will emerge in India. Commerce and Industry Minister Piyush Goyal highlighted this during his address at a press conference held in Mumbai.

India has achieved the remarkable accomplishment of activating two Trade Agreements this year. After India-UAE Comprehensive Economic Partnership Agreement followed through on May 1, ECTA was executed successfully from December 29 onwards.

On April 2, the India-Australia Economic Cooperation and Trade Agreement (ECTA )was officially endorsed and ratified on November 21. Afterwards, written notifications were exchanged on November 29; 30 days later, it came into full effect.

“There is a lot of potential for exporting finished goods to Australia since they hardly manufacture anything, they are largely a raw material and intermediate producing country, we will get cheaper raw materials which will not only make us more competitive globally but also enable us to serve Indian consumers better; enabling us to provide more quality goods at more affordable prices,” Goyal said. 

Australia, which is largely dependent on imports, will benefit hugely. They will soon start seeing many more finished goods coming in from India, providing a huge amount of work and job opportunities in both goods and services provided by Indian talent,” Goyal added.

The Agreement will also eliminate double taxation on IT services which were making us less competitive and making us less profitable in the IT sector; the double taxation has now been removed by amending the law; from April 1, 2023, double taxation for IT sector will be over, we will save millions and millions of dollars right now, and over a billion dollars going forward, maybe 5-7 years going forward, giving us a competitive edge and also creating a lot of many jobs,” Goyal elaborated.

The Ind-Australia ECTA offers an organized framework to stimulate and enhance trade between the two countries. The agreement covers nearly all of the tariff lines handled by both states.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img